When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that
Blank
______.

BlackTom题目解析

Question

When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that 
Blank
______.

BlackTom题目解析

BlackTom AI · Accepted Answer

Start by restating the core idea: the question asks what it indicates when marginal benefit equals marginal cost in an economy's production of a good.
Option 1: 'the unemployment rate is at its minimum' — This statement is not a direct implication of MB = MC. Unemployment relates to labor market conditions, not the efficiency of resource allocation in a specific good's production. So this is not the correct takeaway from MB = MC.
Option 2: 'resources are being allocated efficiently' — This aligns with the fundamental economic principle that when MB equals MC for a good, the allocation of resources to that good is efficient in the sense that the net social benefit is maximized; any reallocation would reduce total welfare. This is the central interpretation of MB = MC in cost-benefit terms.
Option 3: 'society would be better off by increasing the output of the good' — If MB equals MC, increasing output would raise marginal cost at a rate that surpasses marginal benefit, so total net benefit would not increase. Thus this option misstates the implication of MB = MC.
Option 4: 'society's well-being would increase by decreasing the output of the good' — Conversely, reducing output when MB = MC would lower total net benefit for the same reason; there is no welfare gain from decreasing output at the equality point. This option is also incorrect.
In summary, the correct interpretation hinges on recognizing that MB = MC signals that current production is at an efficient allocation point, whereas the other options describe scenarios not supported by the equality condition MB = MC. The reasoning rejects misinterpretations about unemployment, and about the benefits of increasing or decreasing output when marginal values are balanced.

When an economy produces a good such that the marginal benefit equals the marginal cost, this indicates that Blank ______. BlackTom题目解析

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